Nigeria waives import duties on buses, EVs and machinery to ease inflation pressures
Nigeria’s federal government has approved sweeping reductions in import duties on a range of goods, including mass transit buses, electric vehicles and manufacturing machinery, in a bid to ease inflationary pressures and support businesses.
The measures follow a directive by Bola Ahmed Tinubu instructing economic officials to develop policies to cushion the impact of the ongoing Middle East crisis, which has driven up global fuel prices.
Details of the policy were disclosed on Monday by Dada Olusegun, the president’s special assistant on social media, who said the administration had approved a broad set of fiscal interventions aimed at improving affordability for consumers.
“President Tinubu’s administration has approved a massive reduction in import duties of selected products in order to further reduce inflation, empower local businesses and increase affordability for consumers,” he said.
Under the new policy, import duties on electric vehicles and mass transit buses have been reduced from 5% to zero, in a move designed to promote cheaper public transport and cleaner mobility alternatives. Duties on manufacturing machinery have also been scrapped entirely, with the government aiming to lower production costs and stimulate industrial growth.
The measures extend to key food and industrial imports. Tariffs on raw cane sugar have been cut from 70% to between 55% and 57.5%, while crude palm oil duties have been reduced from 35% to 28.75%. Passenger vehicle duties were lowered from 70% to 40%, bulk rice from 70% to 47.5%, and broken rice from 70% to 30%.
In the construction and manufacturing sectors, duties on steel sheets and coils were reduced from 45% to 35%, while tariffs on glazed ceramic tiles fell from 55% to 46.25%.
The government said a 90-day transition period beginning on 1 April would allow markets to adjust gradually and avoid sudden shocks.
The policy comes amid heightened global uncertainty triggered by the escalating Israel–US–Iran conflict, which has disrupted oil flows through the strategically vital Strait of Hormuz — a route responsible for roughly a fifth of global crude supply.
Oil prices have been highly volatile since the crisis began on 28 February. Prices surged to as high as $120 per barrel before falling below $95 following a brief ceasefire announced on 8 April. Brent crude and West Texas Intermediate both dropped by more than 15% during that period.
However, tensions escalated again after Donald Trump ordered a naval blockade of vessels entering or leaving the Strait of Hormuz on 12 April, following the collapse of peace talks with Iran.
The renewed standoff pushed oil prices sharply higher, with Brent crude rising above $102 per barrel and WTI climbing to $104.16 on Monday.
Officials say the latest tariff adjustments are intended to shield Nigeria’s economy from these external shocks while supporting domestic production and easing the cost of living.